German demands on Greece's bonds could trigger CDS payments!

A letter sent from the German Finance Minister to the ECB, made public today, as reported elsewhere and here in Canada's Golbe and Mail, indicates that payments may soon have to be made on the Credit Default Swaps, issued for bondholders of Greek debt. A quote:

Should the euro zone fail to reach agreement on new payments to Greece by mid-July “we face the real risk of the first unorderly default within the euro zone,” Mr. Schäuble said in the two-page letter sent recently.

Continuing with the pretence that Greece is not in default, after such a situation arises, should really challenge even the hardened liars at the heart of the Euro Project!